Rising energy costs, the gloomy global economy, and recruiting the right talent are among the key concerns in 2012 for CEOs in the transportation and logistics (T&L) industry, a summary of survey results by UK-based professional consulting firm PwC showed.
The PwC’s 15th Annual Global CEO Survey was launched at the World Economic Forum annual meeting last month in Davos, Switzerland. The T&L survey in particular interviewed 98 T&L CEOs from 36 countries on their most pressing industry issues.
Of these industry leaders, 63 percent said rising energy costs was a top concern for them. The economic uncertainty is also a major issue. Confidence among CEOs is fragile, says the report, with just 13 percent expecting an upswing in the economy. Last year 60 percent were very confident of revenue growth, but this year that figure dropped to just 36 percent.
Many, over two-thirds, are also planning on launching cost-cutting schemes this year which may include headcount reductions and streamlining IT operations.
As with last year, talent continues to be a top concern for CEOs across all industries this year. In the T&L summary, 72 percent of CEOs are seeking to change how they manage talent, and 45 percent see competing for scarce human resources as a major threat. In addition, more than a quarter of T&L CEOs said they found young workers the most difficult to hire and keep.
“Transportation and logistics companies need to improve their brand as an employer, introduce cutting-edge recruiting practices and offer attractive career and development opportunities to the younger workforce, [or] they won’t be able to achieve their long-term goals for growth and expansion,” PwC’s global T&L leader, Klaus-Dieter Ruske, said.
The CEOs also said they recognize the need to flex their business style to adapt to the changing global markets, and are reconfiguring their operations to meet local market needs and defend against micro risks and macro disruptions.
Klaus-Dieter Ruske said: “The T&L industry is particularly exposed to external risks. CEOs need to prepare for the consequences of natural disasters and other risks which threaten the supply chains they manage.”
